¶¶Òõ¶ÌÊÓƵ

The Placement Fee Agreement is a crucial document used in South African business relationships between recruitment agencies and companies seeking to hire employees through professional recruitment services. This agreement is essential when a company wants to engage a recruitment agency to source, screen, and present candidates for employment positions. The document comprehensively covers fee structures, service terms, and compliance with South African employment laws, particularly the Employment Services Act 4 of 2014. It provides protection for both parties by clearly defining successful placements, payment obligations, guarantee periods, and replacement provisions. The agreement becomes particularly important in the context of South Africa's complex labor market and regulatory environment, where clear terms of engagement between recruitment agencies and their clients are essential for successful placements.

1. Parties: Identifies the recruitment agency and the client company, including their full legal names, registration numbers, and physical addresses

2. Background: Sets out the context of the agreement - that the agency provides recruitment services and the client wishes to engage these services

3. Definitions: Defines key terms used throughout the agreement, including 'Candidate', 'Placement', 'Placement Fee', 'Successful Placement'

4. Scope of Services: Details the recruitment and placement services to be provided by the agency

5. Agency Obligations: Specifies the agency's responsibilities, including candidate screening, presentation of candidates, and compliance with employment laws

6. Client Obligations: Outlines the client's responsibilities, including providing accurate job specifications and timely feedback

7. Fee Structure: Details the placement fee calculation method, payment terms, and conditions

8. Payment Terms: Specifies payment timeframes, invoicing process, and late payment consequences

9. Guarantee Period: Defines the period during which replacement candidates may be provided if initial placement fails

10. Confidentiality: Addresses the handling of confidential information between parties

11. Term and Termination: Specifies the duration of the agreement and termination provisions

12. General Provisions: Standard legal clauses including governing law, notices, and entire agreement